Dividend

Dividend is a payment made to shareholders, usually once or twice a year out of a company’s profit after taxes are paid. Dividend payments do not distribute the entire net profit of a company, a part or substantial part of which is held back as reserves for the company’s expansion. Dividend is declared on the face value or par value of a share, and not on its market price.

Dividend is also the return of part of the policy's premium for a policy issued on a participating basis by either a mutual or stock insurer.

It is also a portion of the surplus paid to the stockholders of a corporation.